Question

Mayweather reports net income of $340,000 for the year ended December 31. It also reports $111,900 depreciation expense and a $12,100 loss on the sale of equipment. Its comparative balance sheet reveals a $48,600 increase in accounts receivable, a $12,300 decrease in prepaid expenses, a $18,700 increase in accounts payable, a $15,300 decrease in wages payable, a $90,400 increase in equipment, and a $121,000 decrease in notes payable. Calculate the net increase in cash for the year.

Answer 1

Answer:

$207,400.00

Explanation:

                                                                    Amount in $

Operating activities  

Net income                                                     340,000.00  

Depreciation expense                                       111,900.00  

Loss on sale of equipment                                 12,100.00  

Increase in account receivables                        (48,600.00)

Decrease in prepaid expense                       18,700.00  

Decrease in wage payable                              (15,300.00)

Net cash flow from Operating  activities      418,800.00

 

Investing activities  

Increase in equipment                                       (90,400.00)

Financing activities  

Decrease in note payable                               (121,000.00)

                                                                                           

Net increase in cash                                       207,400.00